Brewdog Shares

DireEmblem

So never had it been cheaper of late to buy some shares.  Resellers have these listed for £12 a share, brewdog last offered them for £25, and the last investor sale round sold them for £15.

Given they are an unlisted company, it’s difficult to truly value the price of a share.  You could take into consideration the online or brewdog bar discounts included for being an investor.  If you like their brew, then buying shares might be a sensible choice for the investor discount.

But then with things as they are, does £12 represent a reasonable valuation of the share price right now?

Thrugelmir

I'd only buy the shares for the discounts on offer. Unlikely to provide a great investment return. 

Fodderlink

Where are the reselling of shares going on? As far as I am aware you can only trade them when BrewDog open the trading window which I don't think is currently open.

The_Earl_of_Streatham

If you're not a reader of Private Eye then you may care to read this https://kmflett.wordpress.com/2020/03/13/private-eyes-analysis-of-crafty-brewers-brewdog/

For those disinclined to follow links from infrequent posters, the conclusions from the Eye quoted in the article are
"it is not suggested that any of these transactions are illegal or improper. The question is whether they are appropriate for a company with 100,000 other shareholders"
and
 "it notes that while a profit of £3.8m was made in 2016 this had reduced to £1.4m in 2017 and by 2018 had become a pre-tax loss of £576,000".

The company seems to present itself as some sort of pioneering maverick while behind the scenes money is moving about in a way that wouldn't be encouraging me to invest even if there were a liquid market in its shares.

The Eye article appeared a few months back and they haven't been sued yet.

Albermarle

Remember craft beer is a trend , so people will lose interest when they realise the main purpose of the name 'craft' is to double the price over normal beer and lager .

clive0510

I have tried some of the brew dog products. they are ok, apart from the extortionate price.

kinger101

Some of their products are underwhelming and taste to me more like bog-standard beers.  For the pricier ones, I've no interest in buying Sierra Nevada clones at £3 a can when I can just buy Sierra Nevada at around half that price.  

They do have a decent non-alcoholic range, and their lost lager (which is only £9 for 12 from Tescos) is pretty decent for those who like a hoppier taste.  Though Adnam's dry-hopped is better.

kinger101

Albermarle said:

Remember craft beer is a trend , so people will lose interest when they realise the main purpose of the name 'craft' is to double the price over normal beer and lager .

I think it's here to stay now. Just like some people will not drink instant coffee, there are enough people who have no interest in drinking Fosters or Tetleys.  Though the market is saturated, so I don't expect any microbrewery to become the next FeverTree.

Most of the craft beers are only a little more expensive in bars than the standard beers.  The silly priced ones are very small volume beers.  Many of which are only made once in small quantities for good reason.

clive0510

our local pub used to sell it in 300 or 350ml bottles for same price as a pint of real ale. which in my view is a better drink anyway.

Albermarle

kinger101 said:

Albermarle said:

Remember craft beer is a trend , so people will lose interest when they realise the main purpose of the name 'craft' is to double the price over normal beer and lager .

I think it's here to stay now. Just like some people will not drink instant coffee, there are enough people who have no interest in drinking Fosters or Tetleys.  Though the market is saturated, so I don't expect any microbrewery to become the next FeverTree.

Most of the craft beers are only a little more expensive in bars than the standard beers.  The silly priced ones are very small volume beers.  Many of which are only made once in small quantities for good reason.

Quite a lot of more traditional breweries ( big and small )have brought out new beers and lagers that follow the craft beer trend of being lighter and hoppier to some extent.. UK real ale using American hops for example.
So the line between these type of bitter and craft beer has become  a bit blurred , in terms of taste anyway . Although the latter still are more expensive and more heavily packaged .

noClue

I would buy this one,but it's limited edition lol